The UK streaming market is entering a defining moment. New data from Worldpanel by Numerator’s Entertainment on Demand (EoD) Barometer shows that ad-supported streaming is no longer a secondary option—it is fast becoming the default.
Driven by changing consumer behaviour and growing economic pressure, the market is shifting towards lower-cost access models, with Netflix emerging at the centre of this transformation.
A Market Approaching a Tipping Point
In Q1 2026, ad-supported subscriptions reached 13.7 million households, just behind the 14.1 million on ad-free tiers. With a gap of only 370,000 households, ad-supported services are expected to overtake ad-free within the next three months.
This marks a structural shift in the UK streaming landscape. What was once positioned as a budget alternative is now becoming the standard way consumers access content. Increasingly, households are choosing affordability without sacrificing access—signalling a long-term change in how streaming services are packaged and monetised.
Growth Continues Despite Economic Pressure
Even amid financial strain, the streaming market continues to expand. In Q1 2026, 7.6% of the UK population took out a new paid subscription, up from 6.9% the previous year. Total subscriptions rose to 52 million, highlighting the scale of the market.
At the same time, the number of households with at least one service dipped slightly to 20.06 million. Rather than indicating a slowdown, this suggests a growing concentration of multiple subscriptions within fewer households, as consumers refine how they manage and prioritise their streaming spend.
Ad-supported models are playing a central role in this growth. They accounted for 41% of all new paid subscriptions in the quarter, reinforcing their position as a key driver of market expansion.
Netflix Leads the Shift to Ad-Supported Streaming
Netflix has emerged as the clear leader in this transition. After a strong year for Prime Video in 2025, Netflix’s ad-supported tier saw accelerated growth in early 2026, allowing it to overtake its rival in total advertising reach.
Worldpanel by Numerator estimates that Netflix’s ad-supported tier now reaches 11.9 million people aged 6–79 in Great Britain. Crucially, this growth is not limited to new users. While 68% of new subscribers are opting for the ad-supported tier, a growing number of existing premium users are also downgrading in response to cost pressures.
This reflects a broader shift in consumer mindset. As household budgets tighten, audiences are increasingly prioritising value—choosing “the same content for a lower price” over premium, ad-free experiences.
Ad Experience Becomes a Competitive Advantage
As ad-supported models scale, the quality of the advertising experience is becoming a critical differentiator between platforms.
Netflix currently leads on this front, achieving the smallest gap in user satisfaction between ad- supported and ad-free tiers. The difference in Net Promoter Score stands at just three percentage points, compared with 17 points for Prime Video.
This suggests that resistance to advertising is diminishing—provided the experience is well executed. Frequency, relevance and format are becoming just as important as pricing in shaping user perception.
Disney+, Apple TV+ and NOW Adapt to a Changing Landscape
While Netflix leads the shift, other platforms are adapting in different ways. Disney+ recorded the highest share of new subscriber acquisition in Q1 2026, supported by both strong content and expanded distribution. Its partnership with Sky, which integrates Disney+ Standard with Ads into bundled offerings, played a key role in driving growth.
Apple TV+, meanwhile, showed signs of stabilisation. Although its share of new subscriptions declined year-on-year, the platform significantly improved retention, maintaining single-digit monthly churn for nearly a year. However, its reliance on free trials continues to present challenges, with a notable proportion of cancellations occurring when users choose not to convert to paid plans.
NOW also gained momentum, delivering its strongest performance in 12 months. Growth was fuelled by content demand and the integration of HBO Max Basic with Ads into its offering, highlighting once again the increasing importance of bundled, flexible access models.
A Market Redefined by Access, Not Just Content
Across the UK streaming landscape, the rules of competition are evolving. Content remains essential, but it is no longer the only differentiator. Instead, platforms are competing on how content is delivered—through pricing, flexibility, partnerships and, increasingly, advertising models. As ad-supported tiers move towards becoming the norm, the industry is entering a new phase where accessibility and user experience are as critical as the content itself.
The Future of Streaming Is Ad-Supported
The trajectory is clear. Ad-supported streaming is not just growing—it is reshaping the market.
With Netflix leading in both scale and execution, and competitors adapting through partnerships and pricing strategies, the UK is at the forefront of a global transformation.
For platforms, advertisers and content owners alike, one conclusion stands out: the future of streaming will be defined by ad-supported models.
FAQ
What is happening in the UK streaming market?
The UK streaming market is undergoing a structural shift, with ad-supported subscriptions rapidly closing the gap with ad-free plans. This signals a transition towards lower-cost, ad-funded viewing models becoming mainstream.
Are ad-supported subscriptions overtaking ad-free in the UK?
Ad-supported subscriptions have reached 13.7 million households versus 14.1 million ad-free, leaving a gap of just 370,000. Based on current growth, they are expected to overtake ad-free tiers within months.
Why are consumers choosing ad-supported streaming plans?
Consumers are increasingly opting for ad-supported plans to reduce monthly costs while maintaining access to the same content. Economic pressure and price sensitivity are key drivers behind this shift.
How is Netflix performing in ad-supported streaming?
Netflix is leading the transition, with its ad-supported tier reaching 11.9 million people in Great Britain. Additionally, 68% of new Netflix subscribers are choosing the ad-supported plan.
Is Netflix ahead of Prime Video in the UK?
Yes. Netflix has overtaken Prime Video in ad-supported reach, marking a significant competitive shift after Prime Video’s strong performance in 2025.
How important is advertising experience in streaming?
Advertising experience is becoming a key differentiator. Netflix currently leads, with only a 3-point gap in Net Promoter Score (NPS) between ad-supported and ad-free users, compared to 17 points for Prime Video.
What role do partnerships play in streaming growth?
Partnerships are increasingly important for distribution. For example, Disney+ growth was boosted by its integration into Sky’s package, expanding access to new audiences.
Is the streaming market still growing in the UK?
Yes. Total subscriptions reached 52 million in Q1 2026, and 7.6% of the population added a new paid subscription, indicating continued growth despite economic pressure.
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